The Reserve Bank of India (RBI) has taken stringent measures against financial entities Manappuram Finance and Anand Rathi Global Finance for non-compliance with specific regulatory provisions. In an official announcement made on November 16, the RBI disclosed the imposition of monetary penalties on these entities.
Manappuram Finance faced a monetary penalty of Rs 42.78 lakh for non-adherence to certain provisions outlined in the “Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.” The penalty, imposed through an order dated October 31, 2023, marks the RBI’s exercise of its powers conferred under the provisions of the Reserve Bank of India Act, 1934.
Simultaneously, Anand Rathi Global Finance Limited encountered a monetary penalty of Rs 20 lakh due to non-compliance with specific provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016, as per an order dated October 30.
RBI’s statement highlighted that a statutory inspection conducted by the RBI, examining the financial status as of March 31, 2021, revealed deficiencies during the scrutiny of Risk Assessment Reports, Inspection Reports, Supervisory Letters, and related correspondences. Notably, the investigation indicated a failure on the part of Anand Rathi Global Finance Limited in conducting ongoing due diligence of its customers, constituting a violation of the regulatory framework.
These monetary penalties signify the RBI’s unwavering commitment to enforcing strict adherence to financial regulations, emphasizing the significance of compliance by financial institutions with prescribed norms. The actions taken underscore the imperative need for meticulous compliance by financial entities to maintain the integrity and transparency of the financial ecosystem.
The RBI’s measures aim to ensure that financial institutions uphold regulatory standards and maintain due diligence in their operations, thereby fostering a robust and responsible financial environment in the country.
